Abusive Motions Under Bankruptcy Chapter 13 Laws

According to bankruptcy Chapter 13 laws, to revoke confirmation, a creditor must prove the debtor is not entitled to confirmation. A naked allegation is seldom enough to overcome confirmation, because of the initial assignment of the burden of proof by statute lands squarely upon the shoulders of the objecting party. However, with admissible proof offered, all legitimate disputes must be resolved by the court.

New amendments to the Code attempt to alter the previous assignment of the burden of proof. In essence, if any party now objects, for any reason, the debtor must then prove compliance with all legal requirements or the case must be dismissed. However, this provision is at odds with the intent of the Code, and further, easily violates the abusive creditor restriction against creating unnecessary attorney fee expenses. In practice, judges enjoy considerable discretion when assigning weight and credibility to evidence, and sworn testimony the debtor usually defeats abusive motions.